2020 has been a year like no other, so BusinessTime in Essex asked four leading business luminaries from across the county to look back and forward to make some sense of it all. Answering the questions are Denise Rossiter, Chief Executive of Essex Chambers of Commerce; Rob Walker, Head of Business Engagement at University of Essex; Ashleigh Seymour-Rutherford, Chief Executive of Colbea; and David Rooke, Director of Services at Let’s Do Business Group.
What is the most significant impact COVID has had on the Essex economy?
Denise: Until October 17, the Essex economy was holding up reasonably well, businesses had made the necessary adjustments and furloughed staff where necessary. However, the move from Tier 1 (medium risk) to Tier 2 (high risk) and now into a second national lockdown has seen more changes in the confidence of the public and businesses alike. With various sectors having to close there has been a reduction in footfall in town centres which is hitting those retailers who can legally remain open. Inevitably there will probably be job losses and businesses will be looking to the Government for some leadership to avoid further lockdowns.
Ashleigh: With a high proportion of businesses in Essex operating as sole traders, many businesses have found themselves in unchartered territory as their client demand has declined. The nature of how many sole traders operate has meant many have been unable to secure emergency funding. With so many SMEs being impacted, this can have wide reaching and long-lasting impacts on supply chains and the economy. Conversely, the situation has provided an opportunity to review business processes and refine financial commitments.
Rob: I think the combination of the uncertain, emerging landscape alongside the impact on their customer bases is having an impact on the partners we collaborate with. For example, for partners working in the services industry, activity such as marketing or machine learning development has been paused to enable their clients to steady their own ship. I think it has also clearly shown how effective remote working can be – several of our partners have made great strides towards implementing this for the long-term and reducing the overhead of office costs and being innovative with ‘creative space’. Overarching all of this, there’s a sense of disconnect between emerging policy and many of our industry partners, which the Government needs to think carefully about addressing.
David: There’s no doubting the COVID-19 pandemic has and will have a major economic influence. Notwithstanding the major negative impact on the hospitality, retail and travel sectors it has also highlighted major opportunities and acted as a catalyst for positive change in many businesses. This could present a major economic opportunity as businesses are being forced to look extremely closely at themselves, their products and services, their operations and processes, their customers and marketplace, all of which, when combined, force businesses to reposition themselves for what is likely to be a very significant, irreversible change to the UK’s economy and business landscape.
What are the key strengths and weaknesses of the Essex economy?
Denise: Essex is a very entrepreneurial county and has a wide range of business sizes and types. It has good links to London along with major ports and airports as well as two major universities so is well placed for businesses seeking good international connectivity and access to research to help improve productivity and innovation. The internal road network needs improving but investment in upgrading the A12 and a new Third Lower Thames Crossing will go some way to achieving that. However, its proximity to London also has a downside in that it draws Essex residents out of the county to work.
Ashleigh: We have recognised that SMEs in Essex are able to quickly adapt to change. One major strength of the Essex economy is how the business community has pulled together. We have seen more collaboration between businesses and support organisations such as BEST, Let’s Do Business Group, Colbea and local authorities such as Essex County Council and Colchester Borough Council. Whilst small organisations that represent a large proportion of the Essex economy can be more flexible to change, they can also be hardest hit when not having a larger structure to fall back on.
Rob: Undoubtedly there is a resilience and dogged determination from what we have seen and experienced – companies have pivoted or even grown to exploit new markets during this year, whether manufacturing PPE or making a bigger play into the healthcare space. At the same time, when we discuss improving productivity with some of the more traditional SMEs in the region, there is certainly a reduced awareness on strategies to scale effectively – despite many of them offering incredible products and services which could have much further reach. There has been timely and significant funding offered by central government via Innovate UK to support such strategies, which I would implore ambitious businesses to explore and the university can help with this.
David: Essex is home to around 1.8 million people and over 100,000 registered businesses but it is somewhat structurally disjointed and has never really harnessed the power, value and opportunity of its key locational attributes. It is, after all, the unique part of England that adjoins both the global City that is London with one of the world’s top ten research locations, Cambridge, whilst being the UK’s primary international trade hub with two international airports and four seaports. With no other location in the UK housing such economic influencers, collectively Essex could and should be a stronger UK economic powerhouse.
What one thing would you change to make Essex an even more dynamic economy than it already is?
Denise: I’d get the politicians and public sector to work in genuine partnership with businesses and business organisations, such as the Chambers of Commerce, to identify barriers to growth, solutions to them and deliver them together.
Ashleigh: Further funding to nonhospitality-based businesses and certain sole traders who have seen a major decline in client activity due to restricted footfall would be welcomed, as many have been ineligible for funding in the current schemes offered.
Rob: Be more innovative with attracting and retaining talent. Essex is amazing and we really shouldn’t lose so much of our top talent to London. Business needs to work extra hard through incentives and novel reward mechanisms to keep our best brains in the region, whether data scientists, robotics engineers or management scientists. This is the real enabler to growth. When we build back better as Essex, let’s get more creative with methods of attracting, retaining and rewarding the talent we need.
David: There will be few objectors across the Essex business community to the suggestion that the county’s road infrastructure needs major improvement. Many key road projects are taking far longer to materialise then they ever should, the A120 and A12 being two prime examples, and whether people agree with road travel or not, there is no shying away from the fact that efficient road connectivity is crucial to Essex. Never has that been more evident than this year when the delivery of so many items, whether it be food, pharmaceuticals, PPE, COVID-19 tests or disinfectants, have all relied on road transportation and logistics networks.
Looking at the Essex economy, what is your one big hope for 2021?
Denise: That it can rise to the challenges caused by Covid and Brexit, beat them and emerge stronger in the longer term.
Ashleigh: Our statistics show more than 25% of our business advice clients have been from pre-start or new companies, which demonstrates new opportunities can always be found in every situation. We have therefore continued with our efforts of supporting enterprise and have developed new business training programmes suitable for all ages and abilities. For instance, our Advance into Business programme (funded by CXK and the European Social Fund) is aimed at the over-40s looking to start a new business.
Rob: As a university, we’re an enabler of growth for businesses by sharing our expertise and know-how. We want to support companies to once again begin to pick up their research and development planning at pace. For many, this has not stopped, but there are sections of the economy which have had to prioritise sustainability over some of the exciting emerging ideas which they had in train at the turn of the year. Beyond this, my biggest hope is that the economy is able to find the reserves for the sustained energy and adaptability we are going to need as we hopefully emerge from the pandemic. Leading a business is challenging enough and I couldn’t empathise more with business decision-makers trying to navigate the fluidity of the current political and social landscape – keep going!
David: I truly hope, and believe, that Essex will emerge from the current challenges with a somewhat different but stronger economy. We are already seeing London based businesses relocating into the farflung corners of Essex. These changes in locational needs and general working practices provide a very real opportunity for many Essex towns to both accommodate and service the requirements of these new businesses and the once distant and transient workforce. This then provides our towns with new opportunities to provide the services, business and social infrastructure that these new ways of working and indeed living will present.
Finally, one-word answer, which has or will have the greatest impact on the Essex economy: Covid or Brexit?
- Denise: Covid-19
- Ashleigh: Covid-19
- Rob: Covid-19
- David: Covid-19
